Electricity prices to rise 17% less than predicted

The staggered rises follow a six-month winter price freeze

Electricity prices on the Isle of Man are set to rise from July, but by 17% less than predicted.

Manx Utilities (MU) originally announced a 51% hike to be staggered over April and July.

However, due to a fall in wholesale prices, MU has said the second increase will be reduced by two thirds, from 6p per unit to 2p per unit.

That means the overall increase to bills in 2023 will amount to 34%.

An average customer, living in an two or three bedroom house, who does not use electricity to heat their home, saw their annual bills rise by 26% from £751 to £942 in April.

From July those bills will increase again to £1,003, £130 less than original estimates.

Reserves

The first of the staggered increases to bills followed a six-month price freeze.

MU chairman Tim Crookall MHK said the organisation would "continue to monitor wholesale energy prices and react accordingly should changes be required".

He said the government-owned monopoly electricity provider expected a loss of about £50m for the 2022-23 financial year.

"Despite our reserves being utilised to shield customers from sharp price hikes, we remain on schedule to repay bonds attributed to water and power infrastructure projects due in 2030 and 2034,” he added.

MU said it was able to make the adjustments following advice from independent consultants NERA.